A Positive Relationship Exists Between Two Variables If

question 33

Multiple Choice

A positive relationship exists between two variables if

• A) a reduction in one variable is associated with a decrease in the other variable.
• B) a reduction in one variable is associated with an increase in the other variable.
• C) one variable has "positively" no effect on the other variable.
• D) both variables are inflation- distorted.

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Definitions:

Floating Exchange Rates

A system in which the value of a currency is determined by the forex market based on supply and demand relative to other currencies, unlike fixed exchange rates that are tied to a physical commodity or another currency.

Gold Convertible

A financial system where a country's currency has a fixed value in terms of gold, allowing it to be exchanged for a specified amount of gold.

Balance-of-Payment Deficits

A situation in the balance of payments where the payments made by a country for its imports, investments abroad, and other outflows are greater than the inflows from exports, foreign investments, etc.

Japanese Yen

The official currency of Japan, known globally as a major currency for trade and finance.